“To amend the Internal Revenue Code of 1986 to increase the earned income tax credit, and for other purposes.”
No CRS summary available for this bill.
This section increases earned income amounts and phaseout amounts used to calculate the earned income tax credit (EITC) as follows: (1) in the table in IRC §32(b)(2)(A), earned income amounts to $13,629 (from $6,330), $19,140 (from $8,890), and $9,086 (from $4,220); and (2) phaseout amounts in that table to $24,992 (from $11,610) for two family sizes and $11,363 (from $5,280) for one family size. The section further increases the additional phaseout amount for married individuals filing jointly to $7,612 (from $5,000) and revises the EITC inflation adjustment mechanism by changing the base taxable year to 2026 (from 2015) and reference years to 2025 (from 1995 and 2008). The changes apply to taxable years beginning after December 31, 2025. (Thus, the EITC—a refundable tax credit for low- and moderate-income workers that increases with qualifying children—will phase in to higher maximum credits and remain available to families with higher incomes.)